Taxpayers are now gradually filing income tax. So that the last minute rush can be avoided. If you are also going to file ITR, then before that know which form is right for you among ITR-1, ITR-2, ITR-3 and ITR-4. Along with this, what are ITR-1, ITR-2, ITR-3 and ITR-4 and what are their uses?
First of all, we will know which ITR form is for whom.-
- ITR 1- Salary
- ITR 2- Salary + Capital Gain
- ITR 3- Business + Capital Gain
- ITR 4- Income from business
ITR 1 is the easiest, only those people file income tax under ITR 1 whose income is only from salary. Apart from this, people who invest in stock market or elsewhere or have other sources of income also use ITR 2 form.
Similarly, those who earn only from business file their returns under ITR-3 and those who earn from sources other than business file their returns under ITR 4.
What is included in capital gains?
Apart from business and salary, income from other sources is included in capital gains. These include stock market, mutual funds, real estate and valuable things etc. Valuable goods include those things which are valuable. Like gold-silver, any expensive painting etc.
